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Annual report 2017

New acquisition and consistent customer segmentation

Duni’s growth rate largely follows the market and is in line with the previous year, approximately 1%. Net sales increased to SEK 4,441 m (4,271). The operating margin target was exceeded and reached 11.1%.

Earnings per share amounted to SEK 6.99 (7.06). The Board of Directors proposes a dividend of SEK 5.00 (5.00) per share.

2017

Positive relationship building…

Creating an atmosphere where people feel good, are satisfied, and grow as individuals is a crucial element to creating an engaging and positive corporate culture. This, in turn, is crucial to ensuring the organization acts as a unit, works efficiently, and achieves the shared goals. When people feel a sense of satisfaction in their work, it creates an energy that spreads, not just internally but also to customers, suppliers, and in all other relationships necessary for success. The HR program at Duni is called Dunited. It not only includes skills and talent development, but also serves as a vision for creating a company that is engaging, motivating, and unifying.

2018

… creates a strong foundation for the future

2017 saw a number of changes in several different divisions within Duni, all with the aim of strengthening the cooperation between employees and shifting responsibility outward in the organization. The Duni Academy program brought employee skill development into focus. Customer segmentation was conducted in all business areas to enable us to deliver clearer customer offerings. Great focus was placed on our work to incorporate the newly-acquired Sharp Serviettes in New Zealand. The acquisition was intended to further develop the structure in Asia and Oceania, and to create a greater presence in the area. The existing structure in Asia was reviewed at the same time. All initiatives were aimed at creating a strong foundation for the future, where good relationships permeate operations on all levels and contribute to Duni’s success.

CEO’S COMMENTS

Increased focus on customer needs

Duni has continued on its long-term journey of transitioning from a product-oriented company to a customer-focused company with a strong commitment to the environment. It is a strategy that has been successively implemented in our business areas, support functions and the various companies of the Group – work that was particularly intensive in 2017.

Net sales increased to SEK 4,441 m (4,271)

491

Operating income was SEK 491 m (502)

11,1

The operating margin was 11.1 (11.8) percent

Key ratios, SEK M ^{1), 2)}

	2017	2016	2015	2014	2013
Net sales	4 441	4 271	4 200	3 870	3 349
Operating income*, SEK m	491	502	528	452	369
Operating EBITDA*	630	632	656	572	473
EBIT	456	463	493	433	352
EBITDA	629	622	622	556	483
Net income before tax	439	441	459	414	334
Net income for the year	334	334	346	302	254
Proposed dividend, SEK/Share	5.00	5.00	5.00	4.50	4.00
Equity	2 594	2 486	2 345	2 193	2 099
Return on equity, %	12.9	13.4	14.8	13.8	12.1
Return on capital employed, %	14.4	15.8	18.6	15.4	13.3
Number of employees	2 362	2 279	2 082	2 092	1 902

* Operating income and operating EBITDA are alternative key ratios that Duni uses to guide its operations. It relates to EBIT less amortization of intangible assets identified at acquisition, restructuring costs and fair value allocations.
¹⁾Relates to continuing operations for 2015 and back in time. The discontinued hygiene products business has been recalculated and, in accordance with IFRS, is reported on a line after the net income for the period for continuing operations.
²⁾ Key ratios for 2016 and onwards include non-controlling interests.

Net sales and operating income, SEK m

Net sales per business area

Net sales per geographic region